With the failure of food parks due to shortage of land, another central government sponsored scheme is unlikely to see the light of the day. The state government had earlier told private investors in the food processing sector, that for any project they would have to find land on their own. It would restrict its role to being just a facilitator, even in the case of mega food park development.
As many as seven investors had evinced interest in developing mega food parks, but only two of them are interested in creating the necessary infrastructure. In contrast, it is a scheme launched by central government under which special purpose vehicles (SPV) are to be created. Financial institutions, banks, organised retailers, service providers, producers, farmer organisations could be equity holders.
One of the investors, still awaiting his mega food park project to take off, said, “State does not have a proper policy for mega food parks.” On the other hand, senior government official said there is food processing policy and accordingly facilities will be made available to the stakeholders.
“We can’t provide land to the investors, they will have to identify and acquire land on their own, we can only facilitate investors in mega food parks,” Sevaram, principal secretary department of food processing industry told Business Standard, adding, “There are two investors who are interested in mega food parks.”
An investor, according to mega food park scheme, needs to pick 26 per cent equity in the SPV. Moreover, the combined net worth of the stakeholders should not be less than Rs 50 crore with food processor having Net worth of not less than Rs 10 crore.
The state government also needs to play a facilitator’s role to the investors on fast track or through single window system for all necessary clearances. The state is yet to see if any investor comes forward.
Earlier, Madhya Pradesh had created food park facilities at six different locations but all of them failed as investors evinced no interest. The state is also developing its own food parks in Raisen, Harda and Ratlam through private partnership.